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NovaGold Resources

TSX:NG
Snowflake Description

No noteworthy features.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NG
TSX
CA$2B
Market Cap
  1. Metals and Mining
Company description

NovaGold Resources Inc. explores and develops mineral properties in Canada and the United States. More info.


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  • NovaGold Resources is covered by less than 3 analysts.
SHARE PRICE
3 Month History
NG
Industry
5yr Volatility vs Market
Competitors

Sorry, no analysis for NovaGold Resources's competitors could be found in our database.

Value

 Is NovaGold Resources undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for NovaGold Resources. This is due to cash flow or dividend data being unavailable. The share price is CA$5.16.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for NovaGold Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NovaGold Resources's earnings available for a low price, and how does this compare to other companies in the same industry?
  • NovaGold Resources is loss making, we can't compare it's value to the CA Metals and Mining industry average.
  • NovaGold Resources is loss making, we can't compare the value of its earnings to the CA market.
Price based on expected Growth
Does NovaGold Resources's expected growth come at a high price?
  • NovaGold Resources is loss making, we can't assess if it's growth is good value.
Price based on value of assets
What value do investors place on NovaGold Resources's assets?
  • NovaGold Resources is overvalued based on assets compared to the CA Metals and Mining industry average.
X
Value checks
We assess NovaGold Resources's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. NovaGold Resources has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (32.61%).

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is NovaGold Resources expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

  • NovaGold Resources is covered by less than 3 analysts.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NovaGold Resources expected to grow at an attractive rate?
  • Unable to compare NovaGold Resources's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare NovaGold Resources's earnings growth to the CA market average as it is expected to be loss making during the next 1-3 years.
  • Unable to compare NovaGold Resources's revenue growth to the CA market average as no estimate data is available.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • NovaGold Resources is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Unable to determine if NovaGold Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • NovaGold Resources is expected to be perform poorly due to negative earnings.

Improvement & Relative to industry
  • NovaGold Resources performance (ROE) can't be compared to the CA Metals and Mining industry due to having negative earnings in 3 years.
  • NovaGold Resources performance (ROE) is expected to still be negative in 3 years.
X
Future performance checks
We assess NovaGold Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the CA market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the CA market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
NovaGold Resources has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has NovaGold Resources performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare NovaGold Resources's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • NovaGold Resources does not currently make a profit.
Earnings and Revenue History
NovaGold Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • NovaGold Resources has negative negative earnings from operations, therefore its ROE is meaningless.
  • NovaGold Resources had negative or no Return on Assets (ROA) last year.
  • Return based on revenue producing assets (ROCE) is negative or zero.
X
Past performance checks
We assess NovaGold Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
NovaGold Resources has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is NovaGold Resources's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up NovaGold Resources's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NovaGold Resources is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NovaGold Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of NovaGold Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Total debt is covered by total short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • NovaGold Resources's level of debt (30% of total debt) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (27.6% vs 29.5% today).
  • Total debt is not well covered by annual operating cash flow (less than 20% of total debt).
  • NovaGold Resources is making a loss, therefore interest on debt is not well covered by earnings.
X
Financial health checks
We assess NovaGold Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by short term assets? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. NovaGold Resources has a total score of 2/6, see the detailed checks below.


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is NovaGold Resources's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from NovaGold Resources dividends.
If you bought CA$2,000 of NovaGold Resources shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Not paying a dividend.
  • Not paying a dividend.
Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Not paying a notable dividend.
  • Not paying a notable dividend.
Current Payout to shareholders
What portion of NovaGold Resources's earnings are paid to the shareholders as a dividend.
  • Not paying a notable dividend.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years.
X
Income/ dividend checks
We assess NovaGold Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can NovaGold Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. NovaGold Resources has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of NovaGold Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Greg Lang, image provided by Google.
Greg Lang
COMPENSATION $5,476,244
AGE 62
TENURE AS CEO 5.8 years
CEO Bio

Mr. Gregory A. Lang, also known as Greg, has been the Chief Executive Officer and President of NovaGold Resources Inc. since January 9, 2012. Mr. Lang has over 30 years of diverse experience in mine operations, project development and evaluations. He served as Special Advisor to the Board of Sunward Resources Ltd since July 2012. He served as the Chief Executive Officer and President of NovaCopper Inc. He joined NovaGold from Barrick Gold Corporation where he served as the President of Barrick Gold of North America, Barrick Gold's wholly-owned subsidiary and was responsible for Barrick Gold's nine operations in the United States, Canada and the Dominican Republic, including the Donlin Gold project, equally owned by wholly-owned subsidiaries of NovaGold and Barrick Gold. He has held progressively responsible operating and project development positions over his 10-year tenure with Barrick Gold and prior to that, with Homestake Mining Company and International Corona Corporation, both of which are now part of Barrick Gold. Mr. Lang has been a Director of Sunward Resources Ltd since September 13, 2012. He has been an Independent Director at Trilogy Metals Inc. (also known as: NovaCopper Inc.) since January 24, 2012. He holds a Bachelor of Science in Mining Engineering from University of Missouri-Rolla and is a Graduate of the Stanford University Executive Program.

CEO Compensation
  • Greg's compensation has increased whilst company is loss making.
  • Greg's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the NovaGold Resources management team in years:

4.6
Average Tenure
59.3
Average Age
  • The tenure for the NovaGold Resources management team is about average.
Management Team

Greg Lang

TITLE
Chief Executive Officer
COMPENSATION
$5M
AGE
62
TENURE
5.8 yrs

Dave Ottewell

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
56
TENURE
4.9 yrs

Dave Deisley

TITLE
Executive Vice President
COMPENSATION
$2M
AGE
60
TENURE
4.9 yrs

Melanie Hennessey

TITLE
Vice President of Corporate Communications
TENURE
5.6 yrs

Tricia Pannier

TITLE
Corporate Secretary
TENURE
0.3 yrs

Gary Ward

TITLE
Project Director of Galore Creek Mining Corporation
TENURE
9.8 yrs

Ron Rimelman

TITLE
Vice President of Environment

Richard Williams

TITLE
Vice President of Engineering and Development
TENURE
4.5 yrs

Andy Cole

TITLE
General Manager of Donlin Gold Project - Alaska
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the NovaGold Resources board of directors in years:

9.3
Average Tenure
65
Average Age
  • The tenure for the NovaGold Resources board of directors is about average.
Board of Directors

Tom Kaplan

TITLE
Chairman of The Board
COMPENSATION
$322K
AGE
54
TENURE
5.9 yrs

Greg Lang

TITLE
Chief Executive Officer
COMPENSATION
$5M
AGE
62
TENURE
5.5 yrs

Gerry McConnell

TITLE
Independent Lead Director
COMPENSATION
$213K
AGE
72

Kalidas Madhavpeddi

TITLE
Independent Director
COMPENSATION
$223K
AGE
62
TENURE
10.4 yrs

Gil Leathley

TITLE
Independent Director
COMPENSATION
$261K
AGE
80
TENURE
5.9 yrs

Igor Levental

TITLE
Independent Director
COMPENSATION
$213K
AGE
62
TENURE
7.3 yrs

Tony Walsh

TITLE
Independent Director
COMPENSATION
$227K
AGE
65
TENURE
5.6 yrs

Clynt Nauman

TITLE
Independent Director
COMPENSATION
$204K
AGE
68
TENURE
18.8 yrs

Rick Van Nieuwenhuyse

TITLE
Non-Independent Director
COMPENSATION
$203K
AGE
61
TENURE
18.8 yrs

Sharon Dowdall

TITLE
Independent Director
COMPENSATION
$210K
AGE
64
TENURE
5.5 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
X
Management checks
We assess NovaGold Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. NovaGold Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

Company News

Company Info

Map
Description

NovaGold Resources Inc. explores and develops mineral properties in Canada and the United States. The company primarily explores for gold, silver, and copper deposits. It holds a 50% interest in the Donlin Gold property that covers an area of 71,420 acres located in the Kuskokwim region of southwestern Alaska; and a 50% interest in the Galore Creek property, a copper-gold-silver project covering an area of 293,837 acres in northwestern British Columbia. The company was formerly known as NovaCan Mining Resources (1985) Limited and changed its name to NovaGold Resources Inc. in March 1987. NovaGold Resources Inc. was founded in 1984 and is based in Vancouver, Canada.

Details
Name: NovaGold Resources Inc.
Ticker: NG
Exchange: TSX
Founded: 1984
Market Cap: CA$1,647,463,040
Shares outstanding: 321,770,125
Website: www.novagold.com
Address: NovaGold Resources Inc.
789 West Pender Street,
Suite 720,
Vancouver,
British Columbia, V6C 1H2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX NG Common Shares The Toronto Stock Exchange CA CAD 29. Jun 1987
AMEX NG Common Shares NYSE MKT LLC US USD 29. Jun 1987
DB NGR Common Shares Deutsche Boerse AG DE EUR 29. Jun 1987
Number of employees
Current staff
Staff numbers
13
NovaGold Resources employees.
Industry
Industry: Gold
Sector: Materials